Following the acquisition of Lockwood Chiropractic, IMAC announces third quarter 2020 results as the stock soars by 200%.
Shares of the provider of innovative medical advancements and orthopedic treatments, IMAC Holdings, Inc. (IMAC) kicked off the session today with quite a bullish momentum. The stock soared as high as $2.42, up by almost 200% from the prior day close of $0.82.
After a sudden push, the stock has dropped down to $1.63 soaring at 96.55%, at the time of press. The stock is aiming for the top as the trading volume is ranked at 3rd place with 79 million, just behind SNDL and NIO.
The company announced that it has acquired Lockwood Chiropractic in Webster Groves, Mo. The firm has a six-figure revenue as a chiropractic clinic and is working since 1990. The basic purpose of this purchase is to expand IMAC’s Ozzie Smith Center brand within an established community near downtown St. Louis.
The owner of LockwoodChiropractic, Sharon Whalen will join IMAC’s team and continue to run the clinic in Webster Groves.
The addition of Chiropractic clinic will help IMAC to have wide access to the patients of St. Louis. The company will be able to develop the infrastructure and expand the existing workplace to deliver as much patients as possible and deliver an immediate and seamless transition.
Simultaneously, IMAC’s Ozzie Smith Center in St. Louis will help the company to grow the Lockwood center and provide an experienced team of their flavor. This expansion model comes up with a great vision of driving successful clinic owners with a loyal clientele at one platform.
The COO of the company, Matthew Wallis stated:
“We believe that this is an excellent example of managing cash outlay while expanding our patient base.”
The closing of the acquisition is scheduled to happen on Nov. 16, 2020.
Following the acquisition announcement, the company reported the third quarter results. The financial results are on the lower side and that may be the reason why the stock has pushed down after a sudden hike early morning.
The net patient service revenues dropped 20% to $3.5 million for Q3 2020 compared to $4.4 million in the same quarter last year. The net loss was $0.12 per share slightly lower compared to the net loss of $0.19 in Q3 2019.
The financial performance was affected by the pandemic impact and uncertain economic conditions.
In addition, the company reported certain notable developments during the third quarter. In early November, IMAC Holdings initiated the enrolment in its phase 1 trials of the umbilical cord-derived mesenchymal stem cells. The study is being conducted for the treatment of bradykinesia patients.
The billable patient volume was highest at 37,992 visits during the third quarter of 2020, reflecting an 8% year of year. While, a 20% sequential increase was recorded in Wellness Membership subscribers to 762 members.
IMAC Holdings, Inc. (IMAC) sold its Lexington, Ky. Property for $1.3 million in a sale-leaseback transaction, in order to lower the costs and recover from the pandemic impact.